CAG

[oldnemesis]

https://www.thestreet.com/story/137...ck-price-target-reduced-at-deutsche-bank.html

http://baseballnewssource.com/marke...-price-target-at-deutsche-bank-ag/112557.html

http://reviewfortune.com/2016/09/26...-insiders-look-pessimistic-about-prospects-2/

http://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.CAG.NYS

http://stockcharts.com/h-sc/ui?s=CAG

Earnings are Sept 29th before market open.

Trade:
With CAG at 43.04
Jan '17 48/50 bear call spread for a net credit of $25
Yield = 25/175 = 14.3% in 115 days or 45% annualized
Prob = 80%
Expectation = .8(25) - .13(175) - .07(87.5) = 20 - 22.75 - 6.12 = -8.9

Price............. Profit / Loss........... ROM %
32.00.................. 25.00................ 14.30%
38.00.................. 25.00................ 14.30%
44.00.................. 25.00................ 14.30%
48.00.................. 25.00................ 14.30%
48.25.................... 0.00.................. 0.00%
50.00................ (175.00)............. -85.70%
52.00................ (175.00)............. -85.70%
55.00................ (175.00)............. -85.70%
60.00................ (175.00)............. -85.70%

 

[Buy1Sell2]

Longer term downtrend continues on Con Agra. There is a pause and a bit of a bounce here, but should constitute nothing more than a bear rally. Look to be selling CAG on rallies going forth.